Company News

FOR IMMEDIATE RELEASE

VillageEDOCS Reports Record Revenues
For Year Ended Dec. 31, 2007

Consolidated Net Revenue up 32% Over Year Ago

SANTA ANA, CA, April 3, 2008—VillageEDOCS, Inc. (OTCBB:VEDO), a Solution as a Service company, which is the largest segment in the Software as a Service (SaaS) market, today announced financial results for the year ended December 31, 2007.

2007 Full Year Highlights:
• Consolidated net revenue for 2007 increased 32% to a record $14,180,658;
• Recurring revenue in 2007 comprised 86% of total revenue from continuing operations;
• Gross margin was 60%, which is consistent with 2006;
• Net income increased at TBS and GSI business units by 129% and 261% , respectively;
• Obtained $200,000 in working capital from the exercise of a warrant to purchase 2,000,000 shares of common stock at $0.10 per share;
• Sold Resolutions unit for $926,835 in cash proceeds, resulting in the return to the Company and cancellation of warrants to purchase 10 million shares of common stock in connection with the sale;
• Repaid $1,070,000 of secured and unsecured debt during 2007.

“We are pleased with the record revenue performance for 2007. While sales are lower than we had anticipated primarily due to the loss of revenue from the sale of our Resolutions business unit in 2007, we are particularly satisfied with the significant sales increases in our TBS and GSI units which accounted for the bulk of our growth,” said Mason Conner, President and Chief Executive Officer of VillageEDOCS, Inc.

“Our MVI unit showed only modest growth year over year due in part to rapidly declining conditions in the mortgage industry. To address this and other challenges to our run rate as we entered 2008, we put a plan into place to maximize internal growth from sales of higher margin products and services and take advantage of cross-selling opportunities at each of our operating business units, and have taken important steps toward accomplishing this goal. For example, we have been able to deploy additional funds toward revenue growth programs by reducing general and administrative and other headcount costs. We continue to look for opportunities to further streamline corporate overhead and operations. We have completed data center and technology platform upgrades and have bolstered our sales and marketing initiatives, including the hiring of two industry veterans to our operational ranks. We are devoting strategic product management and technical resources, both to strengthening the integration of our existing products and services and to developing new products and services that will allow us to offer our clients powerful new solutions comprised of the best that each of our business units has to offer,” Mr. Conner said.

For the full year ended December 31, 2007, VillageEDOCS had consolidated net revenue of $14,180,658, a 32% increase over net revenue for 2006 of $10,742,096. Results in 2007 include a full year of GSI, versus eight months in 2006 from the date GSI was acquired in May 2006. In addition, 2007 and 2006 results reflect a reduction in revenues of $1,763,024 and $2,170,077, respectively, from the Company’s Resolutions business unit, which was sold in December 2007, and reported as a discontinued operation. Net loss for the 2007 year was $3,285,230, or $0.02 per share, compared with a net loss of $882,132, or $0.01 per share for 2006. Basic and diluted weighted average shares outstanding for the 2007 and 2006 periods was 150,218,437 and 131,185,095, respectively. Included in the 2007 net loss was $3,495,079 of loss from corporate activities and $1,625,424 of loss from discontinued operations related to the sale of the Company’s Resolutions business unit. Adjusted Earnings (as defined below) of $541,482 for the year ended December 31, 2007, compares with Adjusted Earnings of $499,622 in the prior year and includes non-cash depreciation and amortization charges and non-cash stock option vesting charges totaling $879,088 (2006: $557,111), among other items (see reconciliation that follows).

During 2007, total operating expenses were $10,249,897, an increase of $2,942,322 from the prior year. The increase resulted from consolidating a full year of operating expenses from GSI versus eight months last year, higher costs related to amortization of intangible assets, compensation, consulting, legal and accounting expenses, including $879,088 in stock-based compensation expense related to vested employee and director stock options. Consolidated operating expenses during 2007 were 72% of sales compared to 68% of sales in 2006.

About VillageEDOCS, Inc.
VillageEDOCS is focused on the Content, Communication and Collaboration segment of the Software as a Service (SaaS) market. Through its MessageVision (MVI) subsidiary, VillageEDOCS is a leading provider of comprehensive business information delivery services and products for organizations with mission-critical needs, including major corporations, government agencies and non-profit organizations. Through its Tailored Business Systems (TBS) subsidiary, VillageEDOCS provides accounting and billing solutions for county and local governments. Through its GoSolutions (GSI) subsidiary, VillageEDOCS provides enhanced voice and data delivery services. For further information, visit the Company’s website at www.villageedocs.com.

Non-GAAP Financial Measure: Adjusted Earnings
We believe “Adjusted Earnings”, which is a non-GAAP financial measure, provides useful information to investors and management by excluding certain income, expenses, and gains and losses that may not be indicative of our core operating and financial reports. We believe that “Adjusted Earnings” is a useful performance measure because certain items included in the calculation of net income (loss) may either mask or exaggerate trends in our ongoing operating performance. We expect to use “Adjusted Earnings” on an ongoing basis to track and assess our financial performance. You, however, should not consider “Adjusted Earnings” in isolation or as a substitute for net income (loss) or any other measure for determining our operating performance that is calculated in accordance with accounting principals generally accepted in the United States of America (“U.S. GAAP,” “GAAP”). “Adjusted Earnings” is not necessarily comparable to similarly titled measures employed by other companies. We expect future Adjusted Earnings to vary significantly from anticipated future net income (loss) because depreciation, amortization, interest, tax, and stock option vesting expenses during 2008 and 2009 are expected to be at least as material as they were during 2007.

Cautionary Statement Regarding Forward-Looking Information

All statements in this press release that do not directly and exclusively relate to historical facts constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements made in this press release, including, without limitation, those relating to our belief about the benefits the Company has derived, or may derive, from pursuing its acquisition strategy or from new management personnel or consultants, and our expectations regarding future operating results, including such for the remainder of 2008, are forward-looking statements. These statements, and other forward looking statements in this press release, represent the Company’s plans, intentions, expectations and belief and are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected or expressed herein. These include, without limitation, risks associated with acquisitions, such as the inability to complete a transaction or to assimilate and integrate new operations and retain key personnel, uncertainties in the market, competition, legal, regulatory initiatives, success of marketing efforts, availability, terms and deployment of capital, personnel risks, and other risks detailed in the Company’s SEC reports, of which many are beyond the control of the Company. Trading in the Company's common stock is limited, and marketability of the stock is restricted by penny stock regulations and the fact that our common stock is traded on the OTCBB. The Company does not presently qualify, and may never qualify, to be listed or quoted on any exchange or other market. The Company assumes no obligation to update or alter the information in this press release. Investors are cautioned not to put undue reliance on any forward-looking statements. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in Section 21E of the Exchange Act.